BP intends to buy stake in TANAP

British BP intends to become a shareholder in the Trans-Anatolian pipeline project (TANAP), acquiring part of share of the State Oil Company of Azerbaijan (SOCAR) in the project, BP's representative in Turkey Bud Fackrell, who is also responsible for BP Turkey's activities in Azerbaijan and Georgia, said in an interview with Anadolu agency.

"The TANAP project is of interest for the entire region, and therefore we support it. BP received SOCAR's offer to purchase part of its share. We intend to purchase a stake in this project," Fackrell said.

However, he did not say what percent of the SOCAR's share the company intends to acquire, stressing that the issue will be discussed and a final decision will be made by mid-2013.

With regard to selection of the route, via which gas will be supplied to Europe, Fackrell said that the final decision will be taken within the next year.

He also stressed that the TANAP and South Stream projects are not competitors, as both projects are necessary to ensure energy security of Europe.

Earlier SOCAR President Rovnag Abdullayev said that TANAP is interested in attracting new participants with gas volumes. He said at present work is underway on an agreement on distribution of shares in the project.

Abdullayev also said that at present proposals of many companies involved in the development of gas fields in Azerbaijan, as well as other companies outside the country are considered. A decision on the stake will be taken depending on volumes of gas transportation by companies and other issues, Abdullayev said.

He said despite the fact that Azerbaijan's share will be distributed, SOCAR intends to retain control over the pipeline.

On June 26, Azerbaijan and Turkey signed an intergovernmental agreement on implementation of the Trans-Anatolian gas pipeline (TANAP) project.

In December 2011, Azerbaijan and Turkey signed a memorandum of understanding to establish the consortium that will build a gas pipeline to supply gas from the Shah Deniz gas field to Europe through Turkey. BOTAS has a 20 per cent stake in TANAP, while SOCAR holds 80 per cent in the project.

The initial capacity of the pipeline will be 16 billion cubic meters.

Some six billion cubic meters of the volume will be supplied to Turkey, while the rest will be transported to Europe.


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